Injunction on Overtime Laws

Yesterday, a federal judge ordered that the US Department of Labor stay implementation of the new overtime laws at the request of 21 states. The judge ruled that a preliminary injunction was appropriate because the Department’s salary level under the Final Rule and the automatic updating mechanism “are without statutory authority.” The injunction was granted on a nationwide basis so as of now the enforcement of the new overtime rules has ceased in all states. Expect an appeal from the Department.